INCOME COMPENSATION: MAINTAINING AN INCOME, EVEN DURING ABSENCE
Income Compensation (IC) compensates for the loss of salary of your employees during military, civilian or civil protection service, or during maternity, paternity or leave to care for a seriously ill child. As an employer, you play a key role in submitting claims and, in certain cases, in receiving the allowance on behalf of your employee.
YOUR ROLE AS AN EMPLOYER IN RELATION TO IC
When an employee is on military service or maternity/paternity leave, Income Compensation (IC) steps in to compensate for part of the loss of earnings. If you continue to pay the employee's usual salary during this period, the allowance is paid to you as reimbursement. If you do not, the allowance is paid directly to the employee.
Your role is to complete the "income before absence" section of the claim form and submit it to our fund as soon as possible to avoid any delay in payment.
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Military or civilian service
An allowance compensates for the salary. -
Maternity, paternity or caregiving leave
An allowance covers part of the salary. -
Simple and fast reimbursement
If the salary is maintained, the allowance is paid to you.
CURRENT AMOUNTS AND DURATIONS
The amount of the allowance depends on the reason for the absence. In most cases, it corresponds to 80% of the average income earned before the absence, up to a daily maximum.
Reason | Amount | Maximum duration |
|---|---|---|
Recruit school | CHF 60 per day | Duration of service |
Military, civilian or civil protection service (excluding recruit school) | 80% of average income, max. CHF 220 per day | Duration of service |
Maternity leave | 80% of average income, max. CHF 220 per day | 98 days (14 weeks) |
Paternity leave | 80% of average income, max. CHF 220 per day | 14 days, to be taken within 6 months of the birth |
Care leave for a seriously ill child | 80% of average income, max. CHF 220 per day | Up to 98 days over an 18-month period |
A child allowance may also be paid. Recruits may be entitled to an additional childcare allowance. Full details are available in our annual information.
OUR FAQ – ANSWERS TO YOUR QUESTIONS
Who should complete the EO application: me or my employee?
Your employee receives the application form directly from the organisation responsible for the service (army, civil protection, etc.), or completes it themselves in the case of maternity or paternity leave. They then pass it on to you so that you can complete the section concerning their income before the absence, before sending it to us.
Do I need to continue paying the employee’s salary during their absence?
This is not mandatory in all cases, but is often provided for in the employment contract, a collective labour agreement or established company practice. If you continue to pay the salary, the EO allowance is paid to you as compensation.
Is the EO allowance subject to social security contributions?
Yes. Amounts paid as EO allowances must be included in the salaries declared, just like any other salary component.
Your forms
Find the most commonly used forms for the various allowances here. Need another form? Contact us and we will send it to you directly.
11 documents
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Contact person
Isa Ebibi
+41 21 613 35 14